SOXS is now around 41.7u, still sliding lower, down nearly 5% over the past 24 hours, trading right along the lows.
The downward momentum of this leg hasn’t changed—price is below the 20 and 50 moving averages, and those 4-hour candles have basically been trending down almost the whole way. Looking at momentum alone, the structure still leans bearish.
But I don’t plan to chase a short right now. The issue is on the contracts side—over these past 7 hours, open interest has actually been shrinking, with value down more than 8%, and the funding rate is still slightly negative. This suggests that what’s pushing it lower isn’t new shorts adding aggressively; it looks more like positions are being exited and the move is winding down. Yes, it’s still falling, but the force to keep smashing lower is thinning.
Also, there’s another clue: over the past 7 hours, the proportion of longs in the whale accounts hasn’t decreased—it’s increased by more than 7 percentage points. That’s moving against the price direction, implying that someone beneath the surface has started to buy counter to the trend.
So my view is: the trend is still bearish, but this isn’t a fresh, high-quality short entry anymore. Chasing a short here risks getting slapped by a low-level rebound—overall the cost-effectiveness isn’t great. A better approach is to wait—either wait for it to rebound back up to a resistance level before considering, or wait for this down move to stabilize on its own.
At this level, I choose to watch and not chase.
#soxs $SOXS
The downward momentum of this leg hasn’t changed—price is below the 20 and 50 moving averages, and those 4-hour candles have basically been trending down almost the whole way. Looking at momentum alone, the structure still leans bearish.
But I don’t plan to chase a short right now. The issue is on the contracts side—over these past 7 hours, open interest has actually been shrinking, with value down more than 8%, and the funding rate is still slightly negative. This suggests that what’s pushing it lower isn’t new shorts adding aggressively; it looks more like positions are being exited and the move is winding down. Yes, it’s still falling, but the force to keep smashing lower is thinning.
Also, there’s another clue: over the past 7 hours, the proportion of longs in the whale accounts hasn’t decreased—it’s increased by more than 7 percentage points. That’s moving against the price direction, implying that someone beneath the surface has started to buy counter to the trend.
So my view is: the trend is still bearish, but this isn’t a fresh, high-quality short entry anymore. Chasing a short here risks getting slapped by a low-level rebound—overall the cost-effectiveness isn’t great. A better approach is to wait—either wait for it to rebound back up to a resistance level before considering, or wait for this down move to stabilize on its own.
At this level, I choose to watch and not chase.
#soxs $SOXS